If You Max out Your Credit Limit Each Month for Rewards, Try This

I can understand people who are chasing rewards points or cashback by spending the most they can on their card(s) but at the same time they are charging above their 30% credit limits on their cards. although you may payoff the balance each month, the issue is that your creditors report balances to the credit bureaus only one time a month.

Let's look at an example. You have a rewards credit card with a $2,000 limit and use it for rewards and pay rent, groceries, gas, entertainment, etc. The statement arrives, you owe $1,800, and you pay it off with a check every month. The big issue here is the credit card company is reporting that $1,800 owed statement balance each month. So you are using 90-percent credit utilization rate and not beneficial for your credit score.

SOLUTION: You can help your score by sending in two payment a month instead of one.